Aker BP

Earnings Release • Feb 17, 2016

DET NORSKE Highlights

Production

Q4 production of 54.0 mboepd

Finance

• Q4 EBITDA USD 208 million, EPS -0.77 (USD)
• USD 1.37 billion in cash and undrawn debt facilities

Business development

Acquisitions of Svenska Petroleum Exploration AS and Premier Oil Norge AS completed

Development projects

• Ivar Aasen development on plan and budget
• Johan Sverdrup CAPEX reductions, break-even oil price below 30 USD/bbl for phase 1
• Alvheim BoaKamNorth IOR well completed

Financials

Q4 2015

FINANCIALS Statement of income

Income statement (USD mill)	Q4 2015	Q4 2014	FY 2015
Revenues	255	346	1,222
Production costs	24	44	141
Other operating expenses	3	11	52
EBITDAX	227	291	1,029
Exploration expenses	19	51	76
EBITDA	208	239	953
Depreciation	112	104	481
Impairment losses	192	319	430
Operating profit/loss (EBIT)	(95)	(184)	41
Net financial items	(56)	(13)	(155)
Profit/loss before taxes	(151)	(197)	(114)
Tax (+) / Tax income (-)	5	90	199
Net profit/loss	(156)	(287)	(313)
EPS (USD)	(0.77)	(1.42)	(1.54)

FINANCIALS Statement of financial position

Assets (USD mill)	31.12.15	31.12.14	Equity and liabilities (USD mill)	31.12.15	31.12.14
Goodwill	768	1,187	Equity	339	652
Other intangible assets	938	940	Other provisions for liabilities incl. P&A (long)	476	503
Property, plant and equipment	2,979	2,549	Deferred tax	1,356	1,286
Receivables and other assets	287	412	Bonds	503	253
Calculated tax receivables (short)	126	-	Bank debt	2,119	2,037
Cash and cash equivalents	91	296	Tax payable	-	189
			Other current liabilities incl. P&A (short)	395	464
Total Assets	5,189	5,384	Total equity and liabilities	5,189	5,384

FINANCIALS Cash flow and liquidity

• Cash flow from investments include payment for the Svenska and Premier Norge acquisitions
• Net interest-bearing debt (book value) of USD 2.53 billion at year-end 2015
• Cash and undrawn debt facilities of USD 1.37 billion at year-end 2015
• Leverage ratio of 2.2x and interest cover ratio of 8.7x at year-end 2015
• Discussions with creditors ongoing with aim to ease covenant thresholds

FINANCIALS Guidance

Item	Latest 2015 guidance	Actual 2015	2016 guidance1 (no change from CMD)
CAPEX	USD ~925 million	USD 877 million	USD 925 – 975 million
EXPEX	USD ~95 million	USD 97 million	USD 160 – 170 million
Production cost	USD ~6.5 per boe	USD 6.4 per boe	USD 8 – 9 per boe2
Production	59 - 60 mboepd	60.0 mboepd	55 – 60 mboepd

¹ Based on USD/NOK 8.8

2

Includes shipping and handling cost budgeted at USD 1.2 per bbl after Det norske started to sell its own crude and is thus not directly comparable to 2015

Operations

Q4 2015

PRODUCTION Oil and gas production in Q4 2015

Q4 2015 production of 54.0 mboepd

• Realized oil price of USD 45/bbl
• Production efficiency was 86.7%, below target

Production capacity reduced in the quarter

Electric fault at in high voltage drive motor for one of the gas compressors at the Alvheim FPSO

Production guidance

2016 production expected between 55 – 60 mboepd

Net production (boepd)

GREATER ALVHEIM AREA Further developing the Alvheim area

New projects in the Alvheim area Alvheim area

• 4 wells put on stream in 2015
• 3 new wells planned to come on stream in 2016
• BoaKamNorth Q2
• Viper and Kobra Q4

Transocean Arctic contract from December 2016

• Two Volund infill wells
• One Alvheim Attic well
• One exploration well at West Volund

Secure continuous development to fill the FPSO

Further maturing opportunities for the area

GREATER ALVHEIM AREA BoaKamNorth IOR well completed

• Tri-lateral well 24/6-A5 completed in February by Transocean Winner
• Total drill-length of 14,473 meters
• One landing pilot and two geo-pilot wells drilled
• Three lateral producers drilled and completed
• Mainbore lateral 6,290 m longest well on Alvheim to date
• Well completed within time and cost
• AFE 169 days vs Actual 141 days
• Last well in 2015 IOR campaign
• Boa A5 gross reserve estimate 14 mmbbls
• Planned production start is Q2-2015

Successful operation Alvheim area well branches

Meters/dry hole day (ex. core&log) by well¹

1Source: Rushmore/Det norske

IVAR AASEN (~35%¹ )

Ivar Aasen project on plan and budget

• Production drilling continued ahead of schedule with top quartile performance
• Construction of topside has reached 94% completion in Singapore
• Topside installation decided for July 2016
• Handover of sub-systems for commissioning and testing for topside and living quarters commenced

Recent events Detailed timeline

IVAR AASEN (~35%¹ ) Upcoming milestones

Hand over of sub-systems for commissioning and testing: Q1 2016

Topside installation – July 2016

Installation of power cable – Q2 2016

Offshore commissioning, testing and preparation for first oil – H2 2016

Load out of topside and sail away from Singapore – Q2 2016

First oil – December 2016

JOHAN SVERDRUP (11.5733%) Benefitting from current market conditions

Project progressing according to plan

• Major contracts have been awarded
• Pre-drilling of wells to commence in Q1 2016

Cost estimates continue to come down

• Phase 1 CAPEX reduced from NOK 123 billion (nom.) to NOK 108.5 billion (nom.)
• Break-even oil price for phase 1 below 30 USD/bbl
• Debottlenecking decided with aim to increase phase 1 production capacity above 380 mboepd
• Phase 2 concept selection planned for Q4 2016

EXPLORATION Stepping up activity

Focus near existing discoveries in the North Sea

• Uptonia well currently drilling reservoir section
• ILX prospect near Ivar Aasen
• Confirm volumes in Krafla/Aska area
• Test prospective trend in Loppa South
• Offered ownership in 10 licenses, including 6 operatorships in APA 2015

License	Prospect	Operator	DETNOR Share	Pre-drill mmboe '	Rig	Time
PL554B&C	Uptonia	Total	30%	$11 - 38$	Leiv Eriksson	Q1
PL626	Rovarkula	DETNOR	50%	$8 - 79$	Maersk Interceptor	Q2
PL272/035	Madam Felle	Statoil	50%	$20 - 49$	TBA
	Askja SE			24 - 79
	Beerenberg			$13 - 46$
	Slemmestad			29 - 86
PL533	Filicudi	Lundin	20%	$24 - 146$	TBA

Outlook Q4 2015

IMPROVEMENT Key improvement themes

OUTLOOK Summary and outlook

Development projects

• Ivar Aasen on plan and budget
• Johan Sverdrup progressing according to schedule, costs continue to come down
• Continue to develop the Alvheim area

Financing

• Available liquidity of USD 1.37 billion
• Discussions with creditors regarding covenant thresholds ongoing

Improvement

Improvement measures implemented to strengthen long-term competitiveness